State threatens to cut local housing aid over vacancies

The state is threatening to cut off funding and freeze bank accounts of local housing authorities that leave apartments vacant for too long.

By Christian Schiavone

Wicked Local

By Christian Schiavone

Posted Dec. 12, 2012 at 12:01 AM
Updated Dec 12, 2012 at 12:10 PM

By Christian Schiavone

Posted Dec. 12, 2012 at 12:01 AM
Updated Dec 12, 2012 at 12:10 PM

» Social News

The state is threatening to cut off funding and freeze bank accounts of local housing authorities that leave apartments vacant for too long.

But housing authority directors on the South Shore and public housing advocates worry that the policy could cut off funding when they need it most to repair apartments left badly damaged by previous tenants.

Housing authorities could lose their state subsidies for apartments that are unoccupied for more than 60 days or have their reserve accounts frozen by the Department of Housing and Community Development under a new policy that goes into effect Jan. 1.

“We believe 60 days is more than adequate,” said Matthew Sheaff, a department spokesman. “There have been a number of steps we’ve taken to reform the system and this is one more step we’re taking.”

The department requires housing authorities to turn over units within 21 working days, but state audits routinely fault authorities for missing that deadline even though many have lengthy waiting lists. An audit of 26 housing authorities around the state released last month found that 22 of them, including Quincy and Canton, had missed the deadline.

Sheaff said housing authorities can request a waiver for extenuating circumstances if, for example, multiple units need repairs at the same time or if the apartments are severely damaged. They’ll also get additional technical assistance from the state.

But housing authority directors say they’ve yet to see the final regulations, including the waiver policy, and they hoped it would have enough safeguards for situations they sometimes can’t avoid.

“You do have some apartments that are in such deplorable condition that it could take longer than 60 days with the resources we have,” said Kathleen Steiger, executive director of the Randolph Housing Authority, adding that any financial penalty would be tough to shoulder. “Any money you don’t get into your housing authority is big money when you’re working with what we have.”

Unless it grants a waiver, the department would begin withholding $5.50 per day – half of the subsidy rate – for every unit vacant longer than 60 days under the new policy. After 90 days, it would withhold the full $11 per day, Sheaff said.

Smaller authorities that don’t receive a state subsidy could have their cash reserves frozen if they have apartments that go vacant for more than 60 days.

On the South Shore and in Greater Brockton, 32 housing authorities had a combined total of 33 apartments that had been vacant for more than 60 days as of Oct. 15, according to the department.

Repairing apartments between tenants can be expensive – upward of $20,000 in extreme cases – and it’s sometimes a cost too large for housing authorities facing an aging housing stock, limited maintenance staff and tight restrictions on how they spend their budgets.

With two weeks to go before the new policy goes into effect, some housing authority directors said they still aren’t sure exactly how it will affect them.

“My attitude is I can’t do any more than I’m doing. If they freeze (the reserve account), they freeze it,” said Louise Galante, executive director of Milton’s housing authority. “I would just hope they’d use good judgment in looking at the circumstances.”

Thomas Connelly, executive director of the Massachusetts chapter of the National Association of Housing & Redevelopment Officials, said he hoped the new policy would focus attention on the needs of housing authorities and not overburden them.

“We want to make sure this is handled in a very fair and equitable manner,” he said. “We don’t want to see it enforced in some arbitrary and capricious way that’s only hurting the residents.”

Sheaff said housing authorities will receive complete information on the new policy before it goes into effect.